A sustainability certification allows companies to publicly demonstrate that they have met particular environmental or social responsibility performance standards. Companies are increasingly seeking sustainability certifications to support evidence for the environmental and social impact claims they make about their business.
Achieving a certification helps corporations manage legal risk associated with ‘greenwashing’, or the use of misleading or false climate statements. For example, on 27 September 2021, the EU launched a new directive (2024/825), which prohibits the use of unsubstantiated environmental claims. Similar regulation is also emerging in other jurisdictions including India and the BRICS region.
The reality is companies are required to align their CSR and ESG reports with verified data. The right certification is a balance of a company’s needs, the requirement of the enquirer and the market in which the company operates.
IRQS (Indian Register Quality Systems), which is ISO 17065 certified, has a variety of sustainability certifications including plastics, water and waste, carbon and responsible sourcing.
The Label That Said Nothing
A shopper once bought a bottle of dish soap that contained claims that it was “planet friendly”, and believed that she was making a more sustainable choice. Unfortunately, she was unable to provide supporting evidence to her claim, and was quickly criticized for her unsubstantiated ‘greenwashing’ by her colleagues.
After a week of regrettable dish soap usage, she checked the bottle to see why it said ‘planet friendly’, and what measures were taken to make that claim, and all she found was a pretty leaf. She had been deceived by false advertising, and paid more for a label.
Unsustainable choices by shoppers is rampant, and regulators are increasingly concerned with false claims, which is why many are implementing laws that require companies to obtain a 3rd party verification. With obvious public demand for sustainability, regulators are rapidly creating laws and companies must comply, or face the consequences.
Here, we will address the rising relevance of sustainability certifications, coverage of key aspects to help in the selection of the right certification and evaluate why such certifications are valuable.
2026 was a landmark year for the importance of having sustainability certifications.
Sustainability used to be tucked away in the last few pages of a company’s annual report. More recently, it’s starting to appear on labels and other materials associated with the final stages of production and delivery of a company’s product. There are several developing regulations and initiatives in various global regions focused on mandating sustainability disclosures.
EU Green Claims Bans
In February 2024, the EU Parliament voted to amend the EU’s consumer law, to prevent companies from making unsubstantiated sustainability claims. The new laws took effect in September 2026.
The law states that companies cannot make general sustainability claims such as:
- “Climate neutral”
- “Green”
- “Natural”
Unless they can provide supporting evidence.
The laws also state that sustainability claims and labels cannot be self-made. In addition, companies cannot set targets such as “net-zero by 2030” or similar sustainability goals, without a supporting plan and evidence.
Regarding the other Green Claims Directive, which is not finalized, there are no impediments to the application of Directive 2024/825. The exporters should prepare for the application of this Directive.
Equalizing of Sustainability and Financial Data
With the Corporate Sustainability Reporting Directive (CSRD), the scope of application is estimated to cover about 50,000 companies, but later this number was decreased by simplification measures. Ultimately, the affected companies need to disclose sustainability information regarding their activities, products and services and provide evidence for such disclosure. These requirements also impact companies that are located outside the scope of application of the Directive.
Phase 2 of CBAM
At the beginning of 2026, the first phase of the CBAM will end and the second phase, that includes financial provisions, will start. Under this phase, companies in India, and specifically the steel sector, will need to provide evidence for reduction of emissions and improve their sustainability.
Sustainability Requirements at Home
India has also required the 1,000 largest companies by market capitalization to issue the Business Responsibility and Sustainability Report (BRSR) since 2020. In the third phase of BRSR, which will be effective from October 2023, larger companies will be required to obtain assurance for the disclosures. In addition to the disclosures, suppliers are required to provide evidence for their sustainability.
Crackdown on Greenwashing Expands
Regulatory crackdowns on greenwashing are becoming more frequent in financial markets. European Union (EU) regulations on funds managed by the Alternative Investment Fund Managers Directive (AIFMD) are a recent example.
Within a few months, approximately 60 percent of funds subject to the regulation changed their names and eliminated descriptions referencing environmental, social, and/or governance (ESG) factors. The remaining 40 percent reworked their names to include broad (and sometimes vague) ESG descriptions. Most industry observers agree that the only names and descriptions that will be allowed on investment funds in the future will be those that can be substantiated.
The associated take-away is that regulators and investors will not accept unsubstantiated claims. A certification will substantiate a sustainability claim.
IRQS Sustainability Certification
The IRQS Sustainability Certification program will help clients better understand their available options, which range across several different business areas.
Responsible Sourcing and Production
The ResponsibleSteel Certification standard will aid the steel industry in demonstrating sustainable production and processing practices and Positive Legacy. With the full implementation of CBAM, responsible sourcing of steel will be of increasing importance for steel service centers and integrators.
The Responsible Fishing Standard, chain of custody assessments, and fishery improvement projects are aimed at the vessel and supply chain segment of the seafood industry. Similar to ResponsibleSteel, this standard will also assist seafood operations in demonstrating Positive Legacy to end retailers.
Plastics and Recycled Content
The Responsible Plastic Management Framework assesses and guides organizations in reducing their plastic footprint. Also within the plastics arena, the Single Use Plastic Free certification, and a related program for the hotel and office sectors, will further assist industry in sustainable efforts.
PCR will provide assurance to businesses that a product, package, or package component contains post-consumer recycled content, which is required by the European Union’s Product Directive 2024/825.
Water Stewardship
Water Neutrality helps organizations determine how to return or offset water consumption in their processes. Obtaining this certification allows organizations to promote their water neutral status.
Zero Liquid Discharge (ZLD) certification enables organizations to demonstrate that they treat and reuse their wastewater, thus eliminating discharge of liquid effluents to the environment. The certification is usually required by law and is predominantly sought after by chemical and pharmaceutical and textile industries.
ISO 46001 helps organizations implement processes, and evaluate and improve the efficiency and effectiveness of their use of water resources.
Waste
Achieving Zero Waste to Landfill (ZWL) status indicates that an organization is able to eliminate landfill disposal of its waste via recycling, reuse and other diversion strategies.
Carbon
The product footprint of a product along its life cycle is evaluated by the organization to determine the product carbon footprint and validate the findings by the issuance of an ISO 14067 certificate.
Achieving the status of carbon neutrality (ISO 14068) means that an organization or product achieves carbon neutrality by reducing its carbon footprint. However, as a result of the recently adopted EU law, organizations cannot claim carbon neutrality to customers if the claim is based only on carbon offsetting. As such, a first, second and third party review of an organization’s processes to reduce its carbon footprint becomes even more critical.
In summary, organizations should be able to demonstrate their certification claims.
ISO 14067 defines the framework for discussing the carbon contents of products with customers located in Europe. The marketing team at the company can get their “recycled” label by acquiring a PCR certificate. In the meantime, CBAM-related questions for a shipment of steel can be answered by ResponsibleSteel. ZLD will likely be the most priority for a plant to address to comply with orders by a pollution control board. Meanwhile, a plant looking to reduce water use and meet sustainability goals can implement ISO 46001.
Depending on the client, the priorities may be different. A company may decide to implement multiple certifications to address needs of its clients. For example, a company may implement ISO 14001 to address the need of the buyers to comply with law and ISO 14064 to address the needs of the end consumer.
In the coming years, companies may have to implement more certifications to meet the tightening regulations. As such, certifications may be required to remain in business. The goal of Directive 2024/825, which came out in 2023, is to reinforce rules to prevent companies from cutting corners to meet the goals.
IRQS’s Certification Process
IRQS has a five step process for assessing a client for sustainability certification.
Step one involves the client completing a detailed questionnaire. After this, the IRQS team evaluates the company’s readiness to be assessed for certification.
Audit of IRQS’s Processes and Procedures:
IRQS auditors perform an in-depth evaluation of the processes and procedures and, where applicable, perform on-site assessments.
Issuance of IRQS Certification:
Upon successful completion of the evaluation process, the organization is issued with a sustainability certification recognized and awarded by IRQS.
Surveillance and Performance Improvement:
To maintain the validity of the certification, organization is required to undergo routine surveillance by IRQS.
The timeframe within which IRQS issues a sustainability certification to an organization is dependent on the standard and the organization’s data maturity level.
Why IRQS is Unique
Issuance of a green certificate by an organization is a different thing from providing a green certificate that passes a regulator’s scrutiny. IRQS is unique in the following ways:
Extensive Experience in Assurance
IRQS has a vast experience and reputation in independent assurance dating back more than 30 years. Being part of the Indian Register of Shipping, IRQS has a vast global presence having served more than 5,000 clients.
Recognized Accreditation
IRQS is accredited by the National Accreditation Board for Certification Bodies (NABCB) and works with reputable international accreditation bodies. Currently, the European Union has set in motion plans to limit the operation of unauthorized sustainable production and service activities, and will strictly enforce approved sustainable production and service certifications.
No Conflict of Interest
Unlike other organizations that perform sustainability evaluation and certification, IRQS is a completely independent and impartial organization, and does not undertake sustainability consultancy services. This enables IRQS to carry out its audits in an impartial manner and gives regulators the confidence to interrogate IRQS’s green claims.
Sector Specialists, Not Generalists
In auditing a steel plant, fishing vessel and a textile dyeing unit one needs an understanding of different domains. IRQS auditors have sector specific experience and are well versed in identifying and assessing waste and environmental flows in a plant.
Global With Local
While the headquarters is in Mumbai, IRQS has branch offices across the length and breadth of India. Other offices in London, Singapore, Dubai, Rotterdam, Kuala Lumpur, and Jakarta provide certification services to Indian industries and businesses.
Frequently Asked Questions
Do you need sustainability certification?
Currently, there are no regulations to mandate sustainability certification. However, since the EU has recently enacted regulations to require evidence for environmental claims made by businesses, and considering a lot of purchasing companies insist on certification of their suppliers, in practice it can be said that in a large number of cases certification is essential.
Can a product be called ‘carbon neutral’ in the EU?
According to the recently enacted EU directive 2024/825, from 2025 onwards it will not be allowable to communicate to the public that a product is ‘carbon neutral’ if the neutrality is achieved only through carbon offsetting.
Can a single company hold multiple certifications?
Yes. Companies have combined ZWL with ZLD. Others have combined PCR with ISO 14067. IRQS can help plan audits to minimize duplication.
How long is a certificate valid?
This varies by the certification scheme. Most require periodic assessment. Re-certification is often done after three years.
It’s Time to Turn Green Claims into Verified Ones
That curly font has had its time in the sun. It’s over.
Legislation in Europe and India requires verified data, and customers have become more savvy. Businesses that align their sustainability claims with the proper certification will have less claims defense burden in the future.
The next step is easy:
- Make a list of all the environmental claims your business has made.
- Identify who is requesting verification and/or proof of the claims.
- Find the certification that aligns with the business claim.
Take a look at the sustainability certifications we offer at IRQS: IRQS Audit and Certification.
The dish soap has no certifications. Your business can earn its first certification today.
